Bitcoin traded lower on Monday as the market weighed the impact of a major hack at Binance and uncertainty ahead of U.S. midterm elections. Ethereum was also down, though the report said it was seeking to stabilize after recent losses. Binance’s gradual resumption of withdrawals offered some relief.
At around 5 p.m. Brasília time, Bitcoin had fallen 1.19% to $76,860.55, while Ethereum was down 0.45% at $2,250.87 over the previous 24 hours, according to Coinbase.
Naeem Aslam, an analyst at Zaye Capital Markets, described the reported $6.3 billion Binance theft as a test of investor confidence, bringing renewed attention to security, liquidity and institutions’ exposure to centralized counterparties. Binance said it had replenished 95% of the affected assets.
Brazilian exchange Mercado Bitcoin also reported an attack, with losses totaling $50 million. The company temporarily suspended withdrawals and deposits but said customer accounts were not affected.
Nick Forster, founder and CEO of derivatives platform Derive.xyz, said market sentiment shifted quickly after the Binance incident. Options traded on Derive put the chance of Bitcoin exceeding $100,000 by Christmas at 3.5%, down from 6% previously. The probability of it topping $80,000 by Friday stood at 26%, he said.
Forster identified the U.S. midterm elections as the next test for Bitcoin. Options reflected an expected move of about 3.1% over the 24-hour period that includes election night. Investors were also watching U.S. employment data and European interest-rate decisions for clues about appetite for riskier assets.
Amid the market turbulence, Strategy reported buying 811 bitcoins for $65.5 million between October 26 and November 1, at an average price of $80,849.
Sources: CNN Brasil.